Company Press Release
SOURCE: American Architectural Products Corporation
American Architectural Products Corporation Reports Profit for Second Quarter
BOARDMAN, Ohio, Aug. 14 /PRNewswire/ -- American Architectural Products Corporation (OTC Bulletin Board: AAPC - news) reported net sales for the second quarter ended June 30, 1998 increased to $61.6 million as compared to $23.0 million for the same period in 1997. The company's gross profit increased to $14.6 million for the second quarter of 1998 compared to $5.5 million for the quarter ended June 30, 1997. Net income for the three month period ended June 30, 1998 was $118,842 for a basic (and diluted) net income per share of $0.01 versus net income of $595,493, basic (and diluted) net income per share of $0.05 for the comparable 1997 period.
Net sales for the six months ended June 30, 1998 were $107.2 million, an increase of $67.6 million over net sales of $39.6 million for the six month period ended June 30, 1997. The company's gross profit increased to $23.7 million for the six months ended June 30, 1998 from $8.6 million in the same period in 1997. Net loss for the six month period ended June 30, 1998 was $2.5 million versus net income of $80,794 for the comparable 1997 period.
The increase in net sales is primarily attributed to incremental volume resulting from acquisitions in 1997 and 1998, adding net sales of $36.0 million and $63.2 million, respectively, for the three and six months ended June 30, 1998. Additionally, the company continues to experience sales growth in its wood, vinyl and aluminum platforms as well as existing entry door business. The financial results for the three and six month period ended June 30, 1998 also reflect increased interest expense of $3.8 million and $7.4 million, respectively, substantially all of which relates to the $125 million 11-3/4% Senior Notes issued by the company in December 1997, and increased general and administrative costs relating to the administration of a larger and more diversified national manufacturer, distributor and installer in the fenestration industry.
The company has pending multiple acquisitions that will add additional nationally recognized brand names, increase product diversity and enhance national distribution. AAPC is growing its position in the non-residential market with the pending acquisitions that will strengthen the company's product lines and significantly increase its presence in a large number of markets in the United States including New York City, the eastern, southeast, southern and southwestern regions of the United States, as well as the mid-west and select cities in western states. The company intends to fund this group of acquisitions with an equity stock offering, which the company previously announced was filed with the Securities and Exchange Commission. The transactions are subject to customary closing conditions.
''Our second quarter results are a strong improvement over first quarter results and are an indication of management's progress in the integration of our acquired family of companies,'' said Frank J. Amedia, president and chief executive officer of the company. ''The company's objectives are to solidify its market positions as a leading national fenestration products manufacturer and distributor, and to enhance its growth, profitability and shareholder value.''
American Architectural Products Corporation, one of the leading manufacturers, distributors and installers of fenestration products, markets throughout the country a broad range of nationally recognized brand name products for both residential and non-residential applications through its multiple operating and distribution network.
Certain statements contained herein with respect to factors which may affect future earnings, including management's beliefs and assumptions based on information currently available, are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements that are not historical facts involve risks and uncertainties, and results could vary materially from the descriptions contained herein. For more details on risk factors, see the company's annual reports on Form 10-K, quarterly reports on Form 10-Q and other filings with the Securities and Exchange Commission.
AMERICAN ARCHITECTURAL PRODUCTS CORPORATION
Consolidated Statements of Operations
(Unaudited)
For the Three For the Six
Months Ended Months Ended
June 30 June 30
1997 1998 1997 1998
Net sales $22,968,393 $61,637,868 $39,609,732 $107,246,034
Cost of sales 17,490,571 47,049,974 31,013,569 83,544,152
Gross profit 5,477,822 14,587,894 8,596,163 23,701,882
Selling expense 1,681,836 5,532,039 3,184,004 10,016,170
General and
administrative expenses 2,082,803 5,288,404 3,929,335 10,206,848
Income from operations 1,713,183 3,767,451 1,482,824 3,478,864
Interest expense, net 781,551 3,762,944 1,396,311 7,441,396
Interest income -- (242,660) -- (598,136)
Other (income) expense (53,407) 57,259 (40,820) 148,903
Income (loss) before
taxes 985,039 189,908 127,333 (3,513,299)
Provision (benefit)
for income taxes 389,546 71,066 46,539 (1,023,051)
Net income (loss) 595,493 118,842 80,794 (2,490,248)
Net income (loss) per share
Basic and Diluted $0.05 $0.01 $0.01 $(0.18)
Weighted average shares
outstanding - Basic 12,374,474 13,785,767 12,616,405 13,772,199
Diluted 12,836,126 14,294,537 12,989,713 13,772,199
SOURCE: American Architectural Products Corporation |
